The investments of Charger Inc. include a single investment: 11,000 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $37 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $45 per share. Required: A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles. B. How is the unrealized gain or loss for trading investments reported on the financial statements?
Q: Fair value journal entries, trading investmentsThe investments of Charger Inc. include a single…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common…
A: Trading securities: These are short-term investments in debt and equity securities with an intention…
Q: Zeus Investments Inc. is a regional freight company that began operations on January 1, 20Y8. The…
A: Investment: Securities are financial instruments that have value and may be traded between parties,…
Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…
A: Investment transactions in 20X0 : On March 20, Purchased XYZ Co. ordinary shares = 1000 shares Share…
Q: On September 1, 1,500 shares of M Company stock are acquired at a price of $24 per share plus a $40…
A: When any security is acquired ,the cost of acquisition would include all brokerage and commission…
Q: Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January…
A: Following are the stock investment transaction, equity method and available-for-sale securities:
Q: Last Unguaranteed Financial Inc. purchased the following trading securities during Year 1, its first…
A: Trading securities: These are short-term investments in debt and equity securities with an intention…
Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…
A: Dividend means the company excess profit after retained earnings are distributed to shareholders in…
Q: Journalize the entries to record the following selected equity investment transactions completed by…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: The following transactions appear on the equity investments at fair value through profit or loss…
A: The fair value of an asset/investment is the value determined by the market which is agreed by the…
Q: Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1.…
A: a. Prepare the journal entry for Year 1
Q: Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of…
A: Available-for-sale securities: These are short-term or long-term investments in debt and equity…
Q: The following equity investment transactions were completed by Romero Company during a recent…
A: Entry to be recorded on April 10.
Q: The securities owned by Miratloces Company were held as a long-term investment. During the current…
A: S.No Particulars Amount in Dr. Amount in Cr. 1-Jan Investment in ABC company A/c To Bank…
Q: The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common…
A: Meaning of shares:Shares are also known as equities, shares are like tiny fractions of a company.…
Q: On January 6, Year 1, Bulldog Co. purchased 34% of the outstanding stock of Gator Co. for $212,000.…
A: Equity investment: Equity investments are stock instruments which claim ownership in the investee…
Q: The following equity investment transactions were completed by Romero Company during a recent year:…
A: The investment under which shares of a company in the stock market are purchased is referred to as…
Q: Can you please help me solve this question?
A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…
Q: The following equity investment transactions were completed by Romero Company during a recent year:…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of…
A: a) Prepare the partial balance sheet of Galileo Company:
Q: On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term…
A: An acquisition is when a company purchases most of another company's shares.
Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…
A: On March 20, 1000 shares were purchased of XYZ co. @ P80.5+ P500 On June 01, the Stock dividend…
Q: The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common…
A: Journalizing includes the day-to day recording of each monetary transactions of a business in the…
Q: Gruden Bancorp Inc. purchased a portfolio of trading securities during Year 1. The cost and fair…
A: Journal entry is a process of recording the business transactions in the books of accounts for the…
Q: Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include…
A: Available for sale securities are the equity or the debt securities bought with the intent of…
Q: The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common…
A: The journal entries to acquire the investment on September 12 and the adjustment on fair value on…
Q: O’Brien Industries Inc. is a book publisher. The partial balance sheets for December 31, 20Y4 and…
A: a) Available for Sale Investments (at Cost) = Balance as on 20Y4 + Purchase on Jan 2 + Purchase on…
Q: Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of…
A: Given that , shares purchased by Hawking 860 units shares purchased by pavlov 2330 units .
Q: On January 1, Vermont Corporation had 43,000 shares of $9 par value common stock issued and…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Bonneau Company had the following transactions relating to investments in available-for-sale…
A: Journal Entry is the primary step to record the transaction in the books of account. Journal entry…
Q: Journalize the entries to record the following selected equity investment transactions completed by…
A: Please find the answer to the above questions below:
Q: The investments of Steelers Inc. include a single investment: 12,400 shares of Bengals Inc. common…
A: Journal: Recording of business transactions in a chronological order.
Q: It is year 1, the White Caps Ltd.’s first year of operations. White Caps Ltd. had the following…
A: 1. Journal entry:
Q: At what amount should the investment be shown on Inn Corporation had 30,000 ordinary shares of NPA…
A: Bonus issue = 30000 shares x 20%= 6000 shares Total number of shares after bonus issue (30000 +…
Q: On January 1, Vermont Corporation had 46,400 shares of $9 par value common stock issued and…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: The following equity investment transactions were completed by Romero Company during a recent year:…
A: Dividends that were declared but not yet paid are reported on the balance sheet under the heading…
Q: Can you please help me Journalize this entry
A: Available for sale securities: these are the securities which are not intended to be sold in the…
Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…
A: Investment transactions in 20X0 : On March 20, Purchased shares of XYZ Co. ordinary shares = 1000…
Q: Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of…
A: We have the following information: Assume that as of December 31, Year 1, the Hawking Inc. stock…
Q: On January 4, Year 1, Ferguson Company purchased 64,000 shares of Silva Company directly from one of…
A: Equity method of accounting refers to the process of recording transactions under which the revenue…
Q: Carla, Inc. purchased 1,810 shares of Oneida Corporation common stock for $84,600. During the year.…
A: As per IFRS 9, Equity investments are to be accounted as per Fair value through profit or loss…
Q: Prepare journal entries to record the following investment-related transactions of a company for its…
A: The numerical has covered the concept of Short Term Investment. investments are generally recorded…
Q: The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common…
A: a.
Q: Prepare journal entries to record the following transactions involving both the short-term and…
A: Solution: Introduction: Journal entry is an accounting entry to record every transaction takes place…
Q: The following equity investment transactions were completed by Romero Company during a recent year:…
A: Journal entry is a record of financial transaction in the books of accounts prepared using the three…
Q: Prepare the journal entry for the following trading securities investment transactions of Johnson…
A: Formula: Journals: Recording of a business transactions in a chronological order. First step in the…
I need help understanding how to solve this
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $37 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $45 per share.Required:A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles.B. How is the unrealized gain or loss for trading investments reported on the financial statements?The investments of Charger Inc. include a single investment: 18,440 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $37 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $45 per share. Required: A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles.The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the December 31,Year 1, balance sheet date, the share price had increased to $42 per share.a. Journalize the entries to acquire the investment on February 24 and record the adjustment to fair value on December 31, Year 1.b. How is the unrealized gain or loss for trading investments reported on the financial statements?
- The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $11 per share.a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1.b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31st, Year 1, balance sheet date, the share price declined to $11 per share. a. Journalize the entries to acquire the invesmtent on September 12 and record the adjustment to fair value on December 31, Year 1. b. How is the unrealized gain or loss for avaialble-for-sale investments disclosed on the financial statements?Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 8,900 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $8 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $6 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Year 1 Sept. 12 Year 1 Dec. 31 b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements? Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the of the
- Fair value journal entries, trading investmentsThe investments of Charger Inc. include a single investment: 14,500shares of Raiders Inc. common stock purchased on February 24, Year 1,for $38 per share including brokerage commission. These shares werelassified as trading securities. As of the December 31, Year 1, balancesheet date, the share price had increased to $42 per share. a. Journalize the entries to acquire the investment on February 24 andrecord the adjustment to fair value on December 31, Year 1.b. How is the unrealized gain or loss for trading investments reported onthe financial statements?Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 8,100 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $10 per share. CashCash DividendsInterest ReceivableInvestments-Bengals Inc. StockRetained EarningsUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale Investme a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Year 1 Sept. 12 fill in the blank fb2219094fa204f_2fill in the blank fb2219094fa204f_4Year 1 Dec. 31 fill in the blank fb2219094fa204f_6fill in the blank fb2219094fa204f_8b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial…Prepare journal entries to record the following investment-related transactions of a company for its first year of operations: On May 4, the company purchased 600 shares of Orbital Company Stock at $140 per share as a short-term investment in an available-for-sale security. On July 1, received a $2.50 per share cash dividend on the Orbital Company stock purchased in transaction (a). On September 15, sold 250 shares of Orbital Company stock purchased in transaction (a) for $85 per share On October 15, sold 100 shares of Orbital Company stock purchased in transaction (a) for $185 per share
- 1. Record, in journal entry form, the following transactions, assuming the company plans on holding the investments for trading purposes: April 16 - Purchased 300 shares of Ameco for $25 per share. • May 2 - Purchased 1,000 shares of Rattle Inc. for $12.50 per share. • June 19 - Sold 100 Ameco shares for $32.75 per share. • October 7 - Purchased 550 shares of BMC for $27.80 per share. • November 30 - Received a dividend of $0.25 per share from Rattle. • December 12 - Sold half the shares in BMC for $21.00 per share. 2. Record any required journal entries on December 31, the company's year-end.Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 3,600 shares of Apollo Inc. as a trading security at $43 per share plus a brokerage commission of $720. Apr. 1. Purchased 1,700 shares of Ares Inc. as a trading security at $17 per share plus a brokerage commission of $340. June 1. Sold 900 shares of Apollo Inc. for $44 per share less an $120 brokerage commission. June 27. Received an annual dividend of $0.14 per share on Apollo Inc. stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $47 and $18 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 1,600 shares of Athena Inc. as a trading security at $50 per share plus a $240 brokerage commission. June 26. Received an annual dividend of $0.17 per…Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1. The following transactions relate to trading securities acquired by Zeus Investments Inc., which has a fiscal year ending on December 31: Year 1 Feb. 14. Purchased 3,400 shares of Apollo Inc. as a trading security at $38 per share plus a brokerage commission of $680. Apr. 1. Purchased 1,600 shares of Ares Inc. as a trading security at $15 per share plus a brokerage commission of $320. June 1. Sold 800 shares of Apollo Inc. for $39 per share less an $100 brokerage commission. June 27. Received an annual dividend of $0.11 per share on Apollo stock. Dec. 31. The portfolio of trading securities was adjusted to fair values of $42 and $16 per share for Apollo Inc. and Ares Inc., respectively. Year 2 Mar. 14. Purchased 1,500 shares of Athena Inc. as a trading security at $44 per share plus a $225 brokerage commission. June 26. Received an annual dividend of $0.14 per share…